Singapore: EMS Energy has announced that its wholly-owned subsidiary, EMS Energy Solutions has secured a contract to build a derrick equipment set (DES) complete with full drilling equipment for an offshore tender rig from its major shareholder, Koastal Industries.
The DES will be manufactured and delivered in accordance to the American Petroleum Institute standard for offshore rigs, and built over 18 months. The order is the second from Koastal, and the company is currently in negotiations to secure a third, as well as a separate DES contract from a third party.
Concurrently, EMS Energy released is results for the financial year ending 31st December 2014, with an increase in revenue to S$48.8m compared to S$21.1m for the previous year. Gross profit increased 46.3% to S$6.1m, albeit with lower margins due to higher material and worker costs.
Ting Teck Jin, executive chairman and chief executive officer of EMS Energy, said, “Securing the second DES contract underscores the Group’s capabilities and ability to deliver as we pursue larger, higher-value projects with better margins. Although the operating environment remains challenging amidst falling oil prices and a tight labour market in Singapore, we will leverage on our strengths and track record for delivering large-scale projects.”
